ANALYZING MARKET COMPETITION BETWEEN AIRBUS AND BOEING USING A DUO HIERARCHICAL GRAPH MODEL FOR CONFLICT RESOLUTION

A duo hierarchical graph model for conflict resolution is developed to investigate market competition between Airbus and Boeing over aircraft sales in the Asia Pacific region. The duo hierarchical graph model, a significant extension of the graph model for conflict resolution methodology, contains two common decision makers, who take part in two related subconflicts, as well as local decision makers, who participate in only one subconflict. New stability definitions are proposed to describe forms of sanction unique to the hierarchical model. The interrelationships between stabilities in the overall graph model and in the two local models are investigated. Then the duo hierarchical graph model is applied to the competition between Airbus and Boeing in both the wide and narrow body markets in the Asia-Pacific region. The two types of Asian airlines have different operating strategies, so that the two markets constitute sub-competitions that can be modelled naturally using the duo hierarchical graph model. The stability results indicate a resolution for all decision makers that implies marketing strategies for the aircraft manufacturers and guidelines for aircraft purchase by the airlines. Thus, this model provides decision makers with a comprehensive understanding of the dynamics of the comoetition and guidance in identifving beneficial actions.

A Two-Level Hierarchical Graph Model for Conflict Resolution with Application to International Climate Change Negotiations

A novel two-level hierarchical graph model is developed to analyze international climate change negotiations with hierarchical structures:the negotiations take place between two nations and between each nation and its provincial governments.The two national government are two decision makers at the top level.Within each nation,the two provincial governments negotiate with the national government at the lower level.The theoretical structure of this novel model,including decision makers,options,moves,and preference relations,are developed.The interrelationship between the stabilities in the two-level hierarchical graph model and the stabilities in local models are investigated by theorems.These theorems can be utilized to calculate complete stabilities in the two-level hierarchical graph model when the stabilities in local graph models are known.The international climate change negotiations as the illustrative example is then investigated in detail.The extra equilibrium,uniquely obtained by this novel methodology,suggests that opposition may still be from one provincial government when the national government does not sign the international climate agreement and implements existing environmental laws.Compared with other approaches,this novel methodology is an effective and flexible tool in analyzing hierarchical conflicts at two levels by providing decision makers with strategic resolutions with broader vision.